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Rialto, CA 92376
City of Rialto
Legislation Details (With Text)
File #: Version: 215-137 Name: TAB 5
Status:Type: Agenda Item Agenda Ready
File created: In control:3/2/2015 City Council
On agenda: Final action:3/10/2015
Title: Request City Council to (1) Adopt Resolution No. 6705 Approving Construction and Credit Agreement by and between the City of Rialto and Lewis-Hillwood Rialto Company, LLC and (2) Adopt Budget Resolution No. 6706 Appropriating Funding for the Construction and Credit Agreement related to the Niagara Project.
(ACTION)
Sponsors:
Indexes:
Code sections:
Attachments:
Exhibit A Niagara Construction and Credit Agreement
Exhibit B - Niagara - Cost Estimate for Fee Credits 2 26 2015 Exhibit C - Reso - Approving a Construction and Credit Agreement with LHR- Niagara Exhibit D - Budget Resolution
Action ByDate Action ResultVer.
For City Council Meeting of March 10, 2015
TO: Honorable Mayor and City Council
APPROVAL: Michael Story, City Administrator
FROM: Robb Steel, Assistant City Administrator/ Development Services Director Request City Council to (1) Adopt Resolution No. 6705
Approving Construction and Credit
Agreement by and between the City of Rialto and Lewis-Hillwood Rialto Company, LLC and (2) Adopt Budget Resolution No. 6706 Appropriating Funding for the Construction and Credit Agreement related to the Niagara Project.
(ACTION)
BACKGROUND:
Pursuant to the Second Amended and Restated Contract of Sale for Areas B, C, and D dated September 25, 2012, (the “Contract of Sale””), by and between the City of Rialto and Lewis-Hillwood Rialto Company, LLC (LHR), LHR has the option to purchase and develop approximately 436 acres of land comprising the former Rialto Airport Municipal Airport (the “Airport Property”).
On January 7, 2015, LHR entered into a Purchase and Sale Agreement (the “Niagara PSA”) with Miro Way Properties, LLC (Niagara) for approximately 36 acres of land, 23.9 acres of which derive from the Airport Property. On January 27, 2015, the City Council approved Resolution No. 6688, which approved an Addendum to the Renaissance Specific Plan (RSP) for the consolidation of eleven (11) parcels of land into 36 acre development parcel and the construction of a 596,749 square City of Rialto Printed on 3/5/2015Page 1 of 4
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foot bottling plant and distribution center (the “Niagara Project”).
On February 3, 2015, the City’s Development Review Committee (the “DRC”) reviewed the Precise Plan of Design (PPD 2363) and established various Conditions of Approval (COA) for the development of the Niagara Project. The COA’s require LHR/Niagara to construct certain off-site public improvements including the construction of Alder Avenue along the Project’s frontage, the construction of a master planned storm drain facility within the Laurel Avenue Utility corridor, and the reconstruction of the traffic signal at Walnut Avenue and Alder Avenue (the “Public Improvements”).
Pursuant to the Niagara PSA, LHR will construct most of the Public Improvements identified within the COA and deliver Niagara a finished development parcel. Most of the public improvements required by the COA are master planned facilities and/or are listed within the City’s Development Impact Fee Nexus Studies. Section 3.33.010 of the Rialto Municipal Code permits the City Administrator to negotiate and enter into Construction and Fee Credit Agreements, subject to the approval of the City Council. LHR requests approval of a Construction and Credit Agreement with the City related to the construction of various Public Improvements including the construction and widening of Alder Avenue, the construction of a master planned storm drain and a modification to an existing traffic signal at Walnut Avenue and Alder Avenue. (Exhibit A).
ANALYSIS/DISCUSSION
:
Under the terms of the Construction and Credit Agreement, the City will reimburse or credit LHR/Niagara for the cost of constructing the following improvements:
1. Construct Alder Avenue (half-width + travel lane) along the Project’s frontage (approximately 1,300 lineal feet from Miro Way northerly to Walnut Avenue).
2. Construct a master planned storm drain within the Laurel Avenue Utility corridor from Miro Way northerly to the intersection of Laurel and Walnut Avenues (approximately 1,750 lf).
3. Relocate and reconstruct the existing traffic signal at the intersection of Alder Avenue and Walnut Avenue.
The estimated cost of these Public Improvements is summarized below and further described in Exhibit B.
LHR/Niagara will pay various development impact fees in connection with the Niagara Project.
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LHR/Niagara will pay various development impact fees in connection with the Niagara Project.
LHR/Niagara will pay development impact fees in excess of the fee credits requested, with the exception of the RSP Traffic Mitigation Fee. The RSP Traffic Mitigation Fee will be limited to the amount of the RSP Traffic Mitigation Fee paid ($83,885). Pursuant to Section 3.33.100 of the Rialto Municipal Code, the developer shall not receive a fee credit or reimbursement for any construction costs exceeding the developer's obligation for development impact fees for the type of public facility constructed.
Additionally, the Construction and Credit Agreement provides for a credit against the RSP Specific Plan/Environmental Impact Report (RSP/EIR) Fee obligation. In consideration for LHR’s previous expenditures related to the processing and approval of the RSP/EIR, the City shall grant a credit of $122,217 toward the RSP Fee Obligation (the “RSP Fee Credit”). There shall be no reconciliation or accounting related to the application of the RSP Fee Credit based on the previously adopted fee program for the RSP Fee.
ENVIRONMENTAL IMPACT:
The Public Improvements are master planned facilities that have been have been analyzed as part of the Program EIR for the Renaissance Specific Plan and California Environmental Quality Act (CEQA) review for Niagara Project. On November 8, 2010, the City certified the EIR for the Renaissance Specific Plan and on November 10, 2010, filed the Notice of Determination for the EIR.
On January 27, 2015, the City Council approved and certified the Addendum to the EIR for the Renaissance Specific Plan, which was prepared for the Niagara Project. A Notice of Determination for the Niagara Project was filed on January 28, 2015.
Approval of the Construction and Credit Agreement is an administrative or fiscal action by the legislative body and will not will result in any additional a direct or indirect physical change in the environment than what was already analyzed (Section 15378(b) of the CEQA Guidelines).
GENERAL PLAN CONSISTENCY:
The City of Rialto has identified several goals and objectives within the City’s General Plan through which the City looks to improve the community.
Goal 3-1: Strengthen and diversify the economic base and employment opportunities and maintain a positive business environment.
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Goal 3-7: Upgrade public infrastructure as an inducement to promote private investment.
LEGAL REVIEW:
The City Attorney reviewed and approved the staff report, the Construction and Credit Agreement and the Resolutions.
FINANCIAL IMPACT:
Development impact fees are paid at issuance of building permits. Niagara will receive credits at building permit issuance for the estimated eligible improvement costs, paying the net amount. Upon Project completion, the final costs will be verified and reconciliation reimbursements to Niagara or payments made to the City.
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The City will reimburse or provide credits to Niagara in the amounts stated above. Revenues will be recognized and expenditures will be charged to the appropriate Development Impact Fee accounts.
With the exception of the RSP Traffic Mitigation Fee, the City expects to collect DIF fees exceeding the DIF credits granted.
RECOMMENDATION:
1. Adopt Resolution No. 6705 Approving a Construction and Credit Agreement by and between the City of Rialto and Lewis-Hillwood Rialto Company related to the Niagara Project.
2. Approve a Budget Resolution No. 6706 appropriation the following expenditures related to the Construction and Credit as follows:
a. Storm Drainage Development Impact Fee Fund Account No. 230-500-4720-3001-150809, in the amount of $422,759.
b. Regional Traffic Development Impact Fee Fund Account No. 250-500-4313-3001-150809, in the amount of $1,130,542; and
c. Renaissance Specific Plan Traffic Mitigation Fee Fund Account No. 301-241-0401-0001- 150809 in the amount of $83,885.
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